What is The Difference Between The Stock And Currency Markets?

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Now the Internet is a lot of advertising on earnings in the Forex market. This is not surprising, because the forex business – very profitable business for companies. But why not spread ads stockbrokers, who is also possible to trade and earn good money with minimal risk?

Just brokerage business is not as lucrative, but it is more reliable for ordinary traders. Why not?

I’ll tell you all about the points.

First – time to market. How many have heard, when trading in the Forex market your transactions remain in the center and dealing of any stock exchange did not fall. Due to this fact and at the expense of thousands of fused-brokers forex clients reap huge profits. Therefore, they are directly interested in the merging of its customers.

With the same stock broker situation is quite different. It is only an intermediary between the trader and the stock exchange, for which he receives a small commission as a percentage of the transaction. If the broker will not withdraw the order to the market and will make the other party to the transaction, it is charged as a fraud. Therefore, brokers are working in good faith and are interested in successful trading of its traders. Because the more successful traders trade, the more commission will in future broker.

Second – mode of operation. Forex works around the clock to 00:00 Monday to 23:59 Friday, that sometimes makes the hapless traders staring at a monitor all day and night in the hope of any profit.

The stock exchange is open from 10:00 to 18:00 (there are only minor changes, more than an hour or an hour less). This allows you to be distracted from work and do not overload yourself.

Third – the risks. Forex risks are huge, the company provides its customers with the ability to trade with a leverage of up to 1:1000. And this is the same as walking on a razor’s edge, one sudden movement – and you are either a lot of work, or have lost everything.

In the stock market is much more relaxed. Trade is conducted with little or no shoulder it. With this approach, you’re unlikely to lose more than 20% of their capital, even if one of your portfolio companies declared bankrupt, which is rare.

Fourth – the depth of the market. A very important tool for analyzing the current state of an asset. At the stock exchange is called the “glass”. In it we see the application of other investors and traders, and we can evaluate on this basis, where the price will go further. If sales volumes are much more likely to mean the price will drop if a lot of applications buyers, the price will rise.

Forex “Glass” is not available to small traders, this tool only see the foreign exchange market big players – banks, investment and hedzhfondy. A trader sees only the schedule of price jumps. And this is a serious flaw in forex trading.

Well, the last – fifth. Strange is it that all of the previous four points were in favor of the stock market. A fifth point – no. Here I would like to say a couple words about taxation. In the stock market traders from all of their income to pay tax – 13%. Forex so no need to pay taxes, but it is actually just not with what is going to pay, because the statistics for 95 – 97% of traders lose their money.

That’s, like, that’s all. Considering all these factors, I went to trade on the stock market. Oh, and forgot.

The minimum amount to trade on the stock market – $ 1,000. Forex can also start with 10 units of U.S. currency.

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